Regions Financial Corp. (NYSE: RF) said it has completed the sale of its Morgan Keegan & Co. brokerage unit to Raymond James Financial.

The sale of the Memphis-based unit will generate about $1.2 billion for Regions, which has said it will use the proceeds to help pay off its $3.5 billion in Troubled Asset Relief Program funding.

Birmingham-based Regions and Raymond James had previously said the purchase price would be $930 million, along with a pre-closing dividend of $250 million. But in today's announcement, Regions said the companies agreed to increase the purchase price to approximately $1.2 billion in lieu of the dividend.

Earlier this year, Regions said it planned to pay back its TARP funds following a $900 million offering and the closing of the Morgan Keegan sale.

Repayment will be contingent on approval of the U.S. Department of the Treasury.